they offered 190

**steve** · 09-19-2007, 09:27 AM

put it on the market in january at 240..
no offers at all.. ugh..
switched agents in july.
lowered the price a couple of times, right now it's at 225.
the first offer today. 190. cash. they like the location, and must close in november.
it's already been a rental for over a year.. i kind of have to sell it in the next 20 months to avoid capital gains tax. but every month i don't sell costs some serious coin.. i don't *have* to sell it, but it is quite a burden sitting there empty on the market.

my timing sucks.

anyway. i countered 215.
good move? bad move?

wwmd?

**Brock Landers** · 09-19-2007, 09:49 AM

Thats fine- they may counter or bail. Almost like...negotiating. Its up to you though, youre the seller, in the end.

**Benny Profane** · 09-19-2007, 09:56 AM

Cash is king right now.

**tuffy109** · 09-19-2007, 09:58 AM

i'll give you $225.

does the house happen to be in venice, on amoroso?

**steve** · 09-19-2007, 09:59 AM

Originally Posted by Benny Profane

Cash is king right now.

i know..
i really wanted to offer 210 since it was cash, just to get this over with..
but i didn't want to seem too desperate.

the realtor said counter 215-219, so I just picked the low end of his range.

on the other hand, with the way the market is, i'd hate to let this one fall through the cracks and get stuck with another buyer who gets stuck in mortgage hell..

-steve

**Benny Profane** · 09-19-2007, 10:05 AM

Are you moving up to the Albany area?

**DBdude** · 09-19-2007, 10:16 AM

why should they pay less if they don't need financing? well qualified borrowers are getting loans still. particularly those not considered jumbo by sallie mae. jumbo = >$340K

**steve** · 09-19-2007, 10:22 AM

Originally Posted by Benny Profane

Are you moving up to the Albany area?

no, just dumping a rental property to pay off some debt.
actually, the albany thing is working out well - i hardly ever go up there now. once in the last 4 weeks. work from home the rest of the time.

-steve

**steve** · 09-19-2007, 10:24 AM

Originally Posted by DBdude

why should they pay less if they don't need financing? well qualified borrowers are getting loans still. particularly those not considered jumbo by sallie mae. jumbo = >$340K

yes, but not all borrowers are well-qualified - all someone would need to make an offer is a pre-approval.. so where does that potentially leave me?

-steve

**DBdude** · 09-19-2007, 10:39 AM

i guess i don't understand, prequalified means well qualified to me. i've only sold one house and bought two, so i am probably missing something.

**steve** · 09-19-2007, 10:44 AM

Originally Posted by DBdude

i guess i don't understand, prequalified means well qualified to me. i've only sold one house and bought two, so i am probably missing something.

I don't know how many people can be pre'd without getting a full mortgage. If I recall, nothing is finalized at the pre-q stage - including interest rate. For all the buyer knows, the bank might offer him something crazy like 11% with points and he'd just have to walk away from it.

Even if I'm wrong about that, there are so many uncertainties, that cash sounds really good right now.

-steve

**DBdude** · 09-19-2007, 10:49 AM

when i get prequalified i always ask the rate and terms. i can't imagine getting prequalified for a loan i couldn't afford. but hey, maybe you are on to something.

**Brock Landers** · 09-19-2007, 11:38 AM

By the way- 190K cash? Are you selling to meth manufacturers? If you can get just a little more from them, go ahead and pull the trigger- the liquidity is worth a lot.

**Platinum Pete** · 09-19-2007, 12:03 PM

Originally Posted by steve

I don't know how many people can be pre'd without getting a full mortgage. If I recall, nothing is finalized at the pre-q stage - including interest rate. For all the buyer knows, the bank might offer him something crazy like 11% with points and he'd just have to walk away from it.

I had this experience when I first started trying to buy a house. Got pre-approved by a mortgage broker recommended by a friend, found a killer house at a steal of a price near my top end for payments at my pre-approved rate. I put in an offer, got accepted, and bailed on day 9 of the 10 day inspection period because my (then) mortgage broker couldn't come within $300 of the pre-approved payment with real financing. Someone else has made over $100k on that house already, so maybe I was hasty in bailing but I was a newb buyer and felt like the financing was going to fuck me and I no longer trusted that mortgage broker.

**steve** · 09-19-2007, 12:13 PM

Originally Posted by Viva

Can't pay it off with hand jobs or lap dances?

are you buying?

**mcsquared** · 09-19-2007, 12:30 PM

Does it cash flow now? I don't know the market in your area but rental rates are rising in much of the country. And with prices declining and interest rates going down rental property is looking better and better. Liquidity is good but don't let the Bennys of the world scare you into accepting just any offer and putting the money under your mattress.

**steve** · 09-19-2007, 12:35 PM

Originally Posted by mcsquared

Does it cash flow now? I don't know the market in your area but rental rates are rising in much of the country. And with prices declining and interest rates going down rental property is looking better and better. Liquidity is good but don't let the Bennys of the world scare you into accepting just any offer and putting the money under your mattress.

I would rent it, but I have two reasons for not:
1.) the aforementioned debt I need to pay off.
2.) the expiration of the capital gains exclusion window. (own it and live in it for two of the last five years. I moved out in early 2006. a new lease, which would have to be 1 year, would put me dangerously close to the expiration date in 2009.)

**MakersTeleMark** · 09-19-2007, 01:01 PM

You'll end up in the middle at 200.

**snowsprite** · 09-19-2007, 01:07 PM

How will the new rates affect this situation six months down the line? Do a cost-benefit analysis here. Can you get closer to the $240 if you wait 1/2 year? A year? Is there any "seasonal" effect driving this sale right now? Spring is usually the time, but last spring was horrific. Coming spring might be back to normal, which would mean better profit for you than now.

If you take the 190, you're "losing" 50K. Will it cost you $50K to hold for 6 mo to 1 year? Are you willing to hold and risk losing what it will cost you?

When you say "serious coin," ask yourself how that compares to "giving up" the $40-50K you probaly expected to make in this sale but are now thinking of settling for less.

I am like the anti-financial person here (no clue) but that is how I would look at the situation. Overall,I do have some luck and make very good decisions w/ real estate transactionss for some reason (kinda like an idiot savant).

But then I spend it all on shoes.

Sprite

**bucbanzai** · 09-19-2007, 01:40 PM

Take whatever he counters back at and don't look back.

You need to start sleeping better by paying off that debt and getting on with your life.

It has been a good investment so far, don't spoil it by holding on too long.

Priced at 240 in Jan. Probably a little high

Sell at 200 in Nov. That is only 17% below ask, and you probably didn't plan on getting that much anyway.

Good Luck. I'm sure it will work out.

**steve** · 09-19-2007, 07:49 PM

Originally Posted by BucBanzai

Take whatever he counters back at and don't look back.

You need to start sleeping better by paying off that debt and getting on with your life.

It has been a good investment so far, don't spoil it by holding on too long.

tru 'dat.
he came back with 205. i took it. i was thinking he'd come in at 200... so i was glad to get the extra 5.

I paid 138 for the property back in 2002.
so after fees and stuff, i'll probably walk away with 190.

Probably about $35K less than what i would have walked away with at a $240 sale, but i still made $52k in 5 years..

so it hurts, but i'll focus on the bright side..

-steve